A sustainable and circular bioeconomy presents opportunities to improve climate change adaptation and resilience by promoting ecosystem restoration, nutrient and water retention in soils, supporting Indigenous People and local livelihoods based on biological products and services as well as building the conditions for more sustainably managed forests and fisheries. A transition to a sustainable and circular bioeconomy involves challenges and risks as well as benefits and opportunities. The potential trade-offs must be carefully considered and mitigating measures put in place to offset the negatives. Policy actions, partnerships and innovations are key tools to support a transition. While a transition to a sustainable and circular bioeconomy is a global goal, local production and consumption are key economic conditions to consider in achieving it. Local economies, green job opportunities and consumer interests should be supported and benefit from a transition. Forest-based materials are used for a wide variety of products in a circular bioeconomy and innovation continues to refine existing and develop new applications. The considerations addressed in this study include the growing demand for renewable forest-based raw materials and energy as well as the drive for a reduction in global reliance on fossil fuels. Additionally, there are considerations for climate change, pollution, and waste, as well as the phasing out of single-use and fossil-plastics, that create opportunities and challenges for the forest sector. To further support a sustainable and circular bioeconomy and the potential for a positive relationship with forests, public and private sector actors need to continue efforts that will effectively address the environmental, economic, and social aspects of a transition.